Created on January 18, 2026

Traders of the GBP/USD will have to decide on their personal perspectives while judging technical, fundamental and behavioral sentiment this coming week.

The highs seen on the 6th of January touched values last seen in September of 2025, but remained far below the apex highs attained then and in the month of June when the 1.37000 value was penetrated. However, the recent lower price action in the GBP/USD is still within the lower middle crux of the currency pair’s value via a one month chart. And near higher elements when a GBP/USD three month technical glance is taken.

The U.K still is producing rather lackluster economic data, this Tuesday employment data will come from Britain, and inflation via CPI statistics will be published on Wednesday. Yet, U.S data and influence via USD centric action remains the dominant force with the GBP. U.S economic data via its inflation statistics were rather mixed, but the most recent releases (October and November data were released last week at the same time due to the U.S government shutdown a couple of months ago) showed inflation remained rather tame – this if you looked at the November results.

However, this point can be argued and certainly did not impact the USD with weakness. In fact the USD got stronger and the downwards price of action of the GBP/USD and the EUR/USD reflected this trend. It can be said that more risk adverse attitudes in the financial markets caused the selloff of the GBP/USD, which picked up moment from late Tuesday and into the remainder of the week. The close of nearly 1.33764 is traversing territory last seen around the 19th of December.

The U.S Federal Reserve is suffering from a rather public debate in its FOMC about the direction of interest rates. Fed Chairman Jerome Powell and President Trump are engaged in a rather unprecedented tussle regarding policy.

• The firefight President Trump is trying to start with the Fed may have financial institutions rather nervous about short and near-term effects on the USD.
• The Fed will conduct its next FOMC meeting the end of January, and not many analysts are predicting a rate cut in this upcoming meeting.
• Also the threat of escalating tension in the Middle East due to the Iranian situation has likely increased nervousness with financial institutions, this as they look forward and deal with near-term commercial cash positions.

Day traders and financial institutions may both feel that the GBP/USD is oversold at its current levels, but nervous sentiment early this coming week should be watched. Depending on news developments the USD could see rather volatile price action due to rhetoric which could influence sentiment rather dramatically in the near-term. If global conditions remain tranquil this could help ease tensions among large institutions, but this doesn’t feel likely. This weekend has produced loud noise regarding threats of more tariffs against Europe due to political diatribes from President Trump about Greenland once again, yes, believe it or not. Thus, large traders are getting hit from many directions regarding noise in the markets.

Also it should be remembered that President Trump is scheduled to speak in the middle of this week at the Davos summit in Switzerland. Trump could engage in a calm tranquil policy speech, or he could easily veer off into rhetoric which makes financial markets nervous. If nervousness wins the day, this could create downwards trajectory for the GBP/USD. Although the GBP/USD may be thought of as being oversold for the moment, looking for sustained upside this coming week may be difficult. Short, quick hitting wagers are recommended for day traders depending on the their perspectives and sentiment shifts which are a certainty.

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• The GBP/USD weekly forecast edges down, as the pair closed the week below 1.3400 amid upbeat US data and risk-off sentiment.
• Markets await key data from both sides to gauge a fresh directional move.
• Technically, the price is leaning to the downside, eyeing 1.3200 if downside pressure sustains.

GBP/USD closed last week on the defensive below 1.3400, paring weekly gains despite a mildly positive data surprise from the UK. The release of UK GDP m/m showed modest growth, but the data failed to trigger sustained buying interest in sterling.

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Markets mainly interpreted the improvement as technical rather than structural, which aligns with the assumption that UK growth is sluggish when money is tight. GBP bulls were uncertain; therefore, the rising momentum faded.

The dollar has better fundamentals in the US. Producer Price Index, Retail Sales, and Initial Jobless Claims all exceeded expectations, indicating a healthy US economy. These disclosures lowered expectations that the Fed would cut rates soon, raising Treasury yields and strengthening the dollar.

A defensive bid for the dollar followed increased geopolitical concerns over Iran, which made people less risk-taking. This accelerated GBP/USD’s decline at week’s end.

GBP/USD Key Events Next Week

The next week will be full of important UK data releases that could set the pound’s course in the near future. The Claimant Count numbers will give us an idea of how the job market is doing, and the Retail Sales and CPI numbers will be crucial for setting expectations for Bank of England rates. Markets will pay close attention to inflation data, especially for signs that prices are easing. Flash PMIs will give us a timely snapshot of business activity in key sectors later this week.

On the US side, investors are now looking at GDP, Core PCE, and Flash PMIs. The Fed still likes Core PCE as an inflation measure, and an unexpected rise could support the view that prices will remain high for a long time. GDP data will help us determine whether the recent strength is widespread or is slowing.

In general, GBP/USD is sliding lower unless UK data clearly beats expectations and US inflation signals weaken. The dollar is still in charge for now, especially given the world’s greater uncertainty.

GBP/USD Weekly Technical Forecast: Make or Break at 100-MA

GBP/USD is consolidating after a rejection from the 1.3550-1.3600 resistance zone, suggesting bullish momentum is fading. The price is below both the 20- and 50-day MA, which are flattening. This supports a neutral to mildly bearish bias. RSI is moving toward the middle line, indicating the market is consolidating rather than continuing its trend.

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The 100-day MA near 1.3360 is a key support level. If the market closes below this level every day, it will open up to 1.3250-1.3200. On the upside, 1.3450-1.3500 is immediate resistance, followed by 1.3600. If the price breaks through this level, it will gain momentum toward 1.3750.

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Copper price provided a new negative close below the barrier at$5.9700, announcing to delay the bullish attack, to begin activating the bearish corrective trend by reaching $5.7900 initially, approaching the initial suggested target in the previous report.

Stochastic exit from the overbought level will increase the negative pressure on the price, which makes us keep the bearish corrective suggestion, to expect targeting $5.6000 level, to press on the extra support at $5.5100.

The expected trading range for today is between $5.6000 and$5.8600

Trend forecast: Bearish correctly